Pepper's Products manufactures and sells two types of chew toys for petsSqueaky and Silent. In May, Pepper's Products had the following costs and revenues. Pepper's Products Income Statement For the Month of May Squeaky $146,000 $169,000 19,000 18,000 80,000 20,000 Silent Total $315,000 37,000 100,000 Sales revenue Direct materials Direct labor Overhead costs Administration Production setup Quality control Distribution Operating profit 20.000 48,000 14.400 21,000 $ 74,600 Pepper's Products currently uses labor costs to allocate all overhead but is considering implementing an activity-based costing system. After interviewing the sales and production staff, management decides to allocate administrative costs on the basis of direct labor costs but to use the following bases to allocate the remaining overhead. Activity Setting up Performing quality control Distribution Cost Driver Number of production runs Number of inspections Number of units shipped Activity Level Squeaky Silent 10 22 30 30 80,000 130,000 Required: a. Complete the income statement using the preceding activity bases. c. Restate the income statement for Pepper's Products using direct labor costs as the only overhead allocation base. Complete this question by entering your answers in the tabs below. Required A Required C Complete the income statement using the preceding activity bases. (Do not round intermediate calculations. Input all amounts as positive values.) Account Silent Total Sales revenue $ $ 169,000 $ 315,000 Squeaky 146,000 19,000 80,000 Direct materials 18,000 20,000 37,000 100,000 Direct labor Overhead costs Administration 20,000 48,000 Setting up Performing quality control 14,400 Distribution 21,000 Total overhead costs 0 Operating profit (loss) $ 47,000 $ 131,000 $ 178,000 Complete this question by entering your answers in the tabs below. Required A Required C Restate the income statement for Pepper's Products using direct labor costs as the only overhead allocation base. (Do not round intermediate calculations. Input all amounts as positive values.) Account Silent Total Squeaky 146,000 Sales revenue $ $ $ 315,000 Direct materials 169,000 18,000 20,000 19,000 80,000 37,000 Direct labor 100,000 0 Overhead costs Operating profit (loss) $ 47,000 $ 131,000 $ 178,000